Some of the information found on a detail inventory card for Indigo Inc. for the first month of operations is as follows.
Received
Date
No. of Units
Unit Cost
Issued,
No. of Units
Balance,
No. of Units
January 2 1,300 $4.83 1,300 7 800 500 10 700 5.15 1,200 13 600 600 18 1,100 5.31 400 1,300 20 1,100 200 23 1,400 5.47 1,600 26 900 700 28 1,700 5.64 2,400 31 1,400 1,000
a. From these data compute the ending inventory on each of the following bases. Assume that perpetual inventory records are kept in units only. (1) First-in, first-out (FIFO). (2) Last-in, first-out (LIFO). (3) Average-cost. (Round final answers to 0 decimal places, e.g. 6,548.)
(1)
FIFO
(2)
LIFO
(3)
Average-cost
Ending Inventory
b. If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, would the amounts shown as ending inventory in (1), (2), and (3) above be the same? What amount would be shown as ending inventory? (Round average cost per unit to 4 decimal places, e.g. 2.7621 and final answers to 0 decimal places, e.g. 6,548.)
(1) (2) (3)
FIFO LIFO Average- cost
Would amount be same Ending Inventory
Some of the information found on a detail inventory card for Indigo Inc. for the first month of operations is as follows.
Received | ||||||||
Date | No. of Units | Unit Cost | Issued, | Balance, | ||||
January 2 | 1,300 | $4.83 | 1,300 | |||||
7 | 800 | 500 | ||||||
10 | 700 | 5.15 | 1,200 | |||||
13 | 600 | 600 | ||||||
18 | 1,100 | 5.31 | 400 | 1,300 | ||||
20 | 1,100 | 200 | ||||||
23 | 1,400 | 5.47 | 1,600 | |||||
26 | 900 | 700 | ||||||
28 | 1,700 | 5.64 | 2,400 | |||||
31 | 1,400 | 1,000 |
a. From these data compute the ending inventory on each of the following bases. Assume that perpetual inventory records are kept in units only. (1) First-in, first-out (FIFO). (2) Last-in, first-out (LIFO). (3) Average-cost. (Round final answers to 0 decimal places, e.g. 6,548.)
(1) | (2) | (3) | ||||
Ending Inventory |
b. If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, would the amounts shown as ending inventory in (1), (2), and (3) above be the same? What amount would be shown as ending inventory? (Round average cost per unit to 4 decimal places, e.g. 2.7621 and final answers to 0 decimal places, e.g. 6,548.)
(1) (2) (3) FIFO LIFO Average- cost | ||||||
Would amount be same | ||||||
Ending Inventory |